Seoul, Hanoi agree to close ranks over US tariffs

The top diplomats of South Korea and Vietnam agreed to closely coordinate in response to the looming "reciprocal" tariffs announced by the US and to develop their comprehensive strategic partnership across a broader array of sectors, including infrastructure, the Foreign Ministry in Seoul said Wednesday.

South Korean Foreign Minister Cho Tae-yul met with his Vietnamese counterpart, Bui Thanh Son, in Hanoi on Tuesday for their second foreign ministerial meeting, following the first held in Seoul in May 2024 — in line with the leaders’ June 2023 commitment to hold such meetings annually.

“The two ministers reaffirmed their unwavering determination to advance the comprehensive strategic partnership between the two countries,” said the South Korean Foreign Ministry.

“Both also agreed to strengthen cooperation across a wide range of areas, including diplomacy and security; trade and investment; strategic cooperation in nuclear power, high-speed rail and mega infrastructure projects; scientific and technological innovation; as well as consular services and people-to-people ties."

The meeting took place at a critical juncture, as South Korea and Vietnam scramble to cushion the blow of potential US tariffs — set at 25 percent and 46 percent, respectively — that are set to take effect in July following the expiration of a 90-day global moratorium, except for China.

“The two ministers agreed to closely communicate on the matter of the US administration’s reciprocal tariffs, given the close linkages between the two countries’ economies,” according to the Foreign Ministry in Seoul.

Vietnam serves as a critical node in the supply chain for South Korean companies doing business in the US, with over 20 percent of exports from Korean firms based in Vietnam estimated to be bound for the US market.

Samsung Electronics produces around 50 percent of its smartphones at its Bac Ninh and Thai Nguyen plants in northern Vietnam, with most of them exported to the US. LG Electronics has planned to increase the production of refrigerators and washing machines at its Hai Phong plant in Vietnam.

“Minister Cho emphasized that South Korea and Vietnam have become premier economic partners, with the two countries ranking among each other’s top three trading partners and South Korea standing as Vietnam’s largest investor,” Seoul said. “Cho called for close cooperation to achieve the bilateral trade target of $150 billion by 2030, as agreed by both countries.”

Trade between South Korea and Vietnam has surged since diplomatic relations were established in 1992, from $500 million to $86.7 billion in 2024, a staggering 170-fold increase.

“The two ministers also shared the view that bilateral cooperation should be expanded in strategic and future-oriented sectors, including nuclear energy and high-speed rail, in a manner befitting their comprehensive strategic partnership and concurred on working closely together toward that goal,” Seoul said.

While Vietnam has decided to revive its once-shelved plans to build nuclear power plants, South Korea and Vietnam have been reactivating their cooperation on nuclear power, which was dormant for years, since signing an intergovernmental memorandum of understanding on nuclear energy in 2011.

Vietnam's high-speed rail project connecting the capital Hanoi in the north to Ho Chi Minh City in the south has emerged as another priority cooperation area, with South Korea actively seeking to join the project through a joint effort by the public and private sectors.

Cho also paid separate courtesy calls on President Luong Cuong and Prime Minister Pham Minh Chinh on Wednesday, during which he "expressed hope that South Korea and Vietnam will maintain close communication on the US reciprocal tariffs," according to the Foreign Ministry in Seoul.

"Cho also conveyed appreciation for Vietnam’s efforts to reflect the interests of South Korean companies during its consultations with the US and requested continued efforts in the forthcoming full-scale negotiations," a separate statement on Thursday read.

Minister of Trade, Industry and Energy Ahn Duk-geun also visited Vietnam on Monday to discuss measures to mitigate the adverse impact of potential US reciprocal tariffs on Korean companies.

During the meeting, Cuong said he looked forward to participating in this year's APEC Summit to be hosted by the South Korean government this November.

In return, "Cho expressed hope that South Korea, as this year’s APEC chair country, and Vietnam, as the APEC chair country in 2027, will actively promote cooperation within the APEC framework. In that regard, he welcomed President Cuong’s participation in this year’s APEC Summit in Gyeongju," the Seoul ministry said.

Cho embarked on his three-day official visit to Vietnam on Tuesday at the invitation of his counterpart Son to attend the Partnering for Green Growth and the Global Goals 2030 summit in Hanoi as a representative of the South Korean government.